Posts

Exclusive: Chinese developer brings on local development muscle as it digs into Santa Clara megaproject

A Chinese company has brought on local development help as it studies the feasibility of building a 10.5 million-square-foot mixed-use development in Santa Clara — a project that local insiders say could get even bigger.

The Chinese developer working on getting approvals for a 10.5 million-square-foot-development on a former Yahoo site in Santa Clara appears to have forged a formal relationship with a local developer to help with the process.

Harmonie Park Development last week announced in a tweet it was “excited to be named development advisor to Kylli.”

Kylli Inc., an American subsidiary of Shenzhen, China-based pharmaceuticals and real estate company Genzon, earlier this year got unanimous approval from Santa Clara City Council members to study amending the city’s general plan to grow the allowed development for the 48.6-acre site roughly at 3005 Democracy Way more than three-fold.

One local land use consultant now says the project could get even bigger, according to conversations he’s had with people purporting to be involved with the project.

Read more from Silicon Valley Business Journal

 

 

Huge investors chase San Francisco’s $300 million Ferry Building

The 1889 building is drawing interest from some of the country’s biggest landlords.

Some of the country’s biggest real estate investors want to buy control of San Francisco’s iconic Ferry Building in a deal that could exceed $300 million.

Kilroy Realty Corp, Hudson Pacific Properties In.c, Invesco Plc, and Thor Equities, are all competing to acquire the building, according to five, sources. A buyer could be selected within a month, said the sources.

The pending deal is another sign of San Francisco’s enduring appeal for major office investors as rents have jumped and little supply is being added.

The 1889 Ferry Building at the eastern terminus of Market Street includes 175,000 square feet of office space and 65, 000 square feet of retail in a popular ground-floor marketplace. The building and its weekly farmer’s markets draw tens of thousands of visitors a week. Its office space with waterfront views also commands some of the highest rents in the city, up to $100 per square feet.

Read more from San Francisco Business Times 

 

 

Nine Things To Keep In Mind About Blockchain In Real Estate

Blockchain is the next frontier of the real estate market, making inroads at a fast clip.

The use of the technology will make it possible to have transparent transactions that sellers and buyers will benefit from. From real-time ledgers to full-on shared databases and processes, blockchain throws the doors wide open with possibilities in real estate. However, does it come at a cost?

Some agents think it might, while others are embracing it with abandon. Yet, there is much to learn and consider before adopting blockchain into your business processes.

Nine members of Forbes Real Estate Council share the thing that everyone in their profession needs to know in order to safely and efficiently begin adopting blockchain or the tools it enables.

Read more from Forbes

 

 

San Francisco’s largest office landlord to break ground on $265 million Oakland tower

Boston Properties, San Francisco’s largest office landlord, will break ground on May 2 on a 402-unit apartment tower next to Oakland’s MacArthur BART station.

The 260-foot project at 532 39th St. will be the tallest building in North Oakland and the company’s first residential project on the West Coast.

The project in the Temescal district will be among a half-dozen Oakland towers to start construction in the last two years, an unprecedented real estate boom that’s drawing some of the country’s biggest developers to the city. Other developers include Lennar Multifamily Communities, Shorenstein Properties and Carmel Partners.

Read more from San Francisco Business Times

 

 

AI is Changing the CRE Game: Here’s 5 Ways

CRE industry leaders using artificial intelligence to analyze and apply data to decision making saw productivity increase of up to 6% compared to competitors.

In a study by Harvard Business Review about the revolution of big data as a management tool, it was found that artificial intelligence used to analyze and apply data to decision making by those at the top of the CRE industry saw an increase of up to 6% in productivity compared to their competitors.

AI is changing the CRE game in several different ways and in turn, having an impact on all CRE sectors in different ways.

Read more from NAI Global

 

 

Exclusive: FivePoint suspends work on 635,000-square-foot shopping mall at the former Candlestick Park

The mall was meant to be the centerpiece of the 280-acre project, one of San Francisco’s largest.

The shopping centerpiece of San Francisco’s 280-acre Candlestick Point development has been suspended amid turmoil in the retail industry, placing one of the city’s largest projects in jeopardy.

Developer FivePoint Holdings LLC and its retail partner Macerich Co. paused work on the 635,000-square-foot mall, according to a Thursday email to the project team obtained by the San Francisco Business Times.

FivePoint said in recent SEC filings that “in light of the rapidly evolving retail landscape,” it was “evaluating the viability of a mall” and “exploring potential alternative configurations of the site.” FivePoint said future plans were uncertain.

The mall was to span over a dozen buildings, bounded by Harney Way, Arelious Walker Way and Ingerson Avenue. It was approved along with 7,200 housing units, a 200-room hotel, and an additional 300,000 square feet commercial space. Infrastructure construction is underway at Candlestick, but no new buildings have started construction and design work is ongoing.

The mall was meant to revitalize the former home of the San Francisco 49ers and Giants, who played at Candlestick Park for four decades. The stadium was demolished in 2014, the same year that the mall project was unveiled and originally set to open in late 2017.

Read more from San Francisco Business Times

 

 

Nine Proven Strategies To Make 2018’s Peak Rental Season Vacancy-Free

In much of the country, the start of peak rental season is just a handful of weeks away, meaning that now is the time to get ready for the rush.

The beauty of peak season is that more people are looking for places to live, which means your pool of potential applicants is bigger — but the flip side is that all of your current tenants are also more likely to move on.

Whether this is your first peak season or your fiftieth, these nine strategies can help minimize the chances that any of your units sit empty, even when turnover is high.

Read more from Forbes

 

 

Scott Wiener’s controversial housing bill gained a big supporter in BART

The fight over SB 827, a proposed law from California State Sen. Scott Wiener to upzone development sites near transit centers, has supporters and detractors lining up in due course.

If approved by the legislature, the law would limit local control over density, parking spaces and heights for housing projects within a certain distance to transit stops. Proponents of the law pitch a symbiosis between housing development and transit options, with the proximity of the two mitigating traffic congestion.

Recently, the effort to pass the law added the region’s most heavily trafficked public transportation system as a proponent: Bay Area Rapid Transit. Earlier this month the BART Board narrowly voted 5-4 to support the measure.

In many cases, building on transit agency sites takes decades, with negotiations with multiple government agencies, substantial community input, difficulties with financing and expensive parking requirements all playing a role.

BART has shown a willingness to support transit oriented development before, approving a policy in 2016 that encourages 20,000 homes to be built on its land by 2040.

Read more from San Francisco Business Times

 

 

New Oakland law could prevent cannabis companies from evicting tenants

The Oakland City Council will hold a special meeting on Thursday to discuss new legislation that, if passed, could prevent cannabis companies who own real estate from displacing existing tenants.

The proposed amendments to the city’s cannabis ordinances, Oakland Municipal Code Chapters 5.80 and 5.81, prohibit the issuance of any approvals for cannabis businesses seeking to operate in spaces currently occupied by work-live or residential uses.

Oakland council member Rebecca Kaplan, the co-author of the proposed legislation, says the amendments balance the city’s support of the cannabis industry with protections for work-live spaces, thus supporting a diverse industrial sector in Oakland.

Read more from KQED

Will commercial real estate values fall? This is how investors can prepare

Will the commercial real estate market always go up? Of course not.

But investors have been spoiled by two decades of double-digit returns that were too good to last. In 2016, returns on institutional-grade property fell below a 20-year 10.1% average for only the first time since the Great Recession, and the latest Urban Land Institute’s Real Estate Economic Forecast puts estimated 2018 and 2019 returns around 6%.

Commercial real estate is cyclical, so it’s logical to expect a downturn at some point. But conventional wisdom holds that it won’t come soon. Colliers International’s 2018 Outlook on U.S. property markets says 2017 was the market’s peak, but the commercial real estate industry is expected to show continued growth, albeit at a more moderate pace, making a real estate market crash less likely.

Although the commercial real estate market’s outlook is still respectable, should investors be deterred by a potential decrease in returns from investment properties in the coming years? As the founder of a real estate investment firm, my informed answer is no. In fact, I believe investors should own private commercial real estate in every market cycle for the following reasons.

Read more from Forbes